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Expand your global workforce in Switzerland

Your guide to the employment landscape, working customs and local labor laws in

Capital

Bern

Currency

Swiss Franc (CHF)

Languages

German, French, Italian, Romansh

GDP per Capita

$103,245.72

Employer Tax

8.07% - 23.4%

Payroll Frequency

Monthly

Talent overview

Switzerland holds the name for one of the world’s most advanced and highly-developed free-market economies. The service sector, along with tourism, are the major contributors to the economic growth of the country. Switzerland holds the 18th rank for Nominal GDP.

Major economic hubs:

Zurich, Bern, Geneva, Basel, Grindelwald

Skills in demand:

Engineers, Skilled Technicians, Software Developers, and other IT professions, Mechanic and Welders

Top local universities in Switzerland

Uni1 5

Eidgenössische Technische Hochschule Zürich – Swiss Federal Institute of Technology

RANKING

Local: 1

World : 52

Uni2 36

École Polytechnique Fédérale de Lausanne (Federal Institute of Technology Lausanne)

RANKING

Local: 2

World : 146

Uni3 5

University of Zurich

RANKING

Local: 3

World : 165

Uni4 4

University of Geneva

RANKING

Local: 4

World : 184

Uni5 5

University of Bern

RANKING

Local: 5

World : 225

Top Local Job Boards:

Experteer, Job.ch, Jobscout24

Number of LinkedIn users:

3,820,000

Multiplier Recruitment Partner:

iXceed

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

The table below mentions the salary data of some job titles with average salaries in Switzerland:

Job Title Average Monthly Salary (CHF) Average Monthly Salary (USD)
Sales Manager 18,200 CHF 21,201 USD
Information Technology Manager 18,100 CHF 21,085 USD
General Manager 17,900 CHF 20,852 USD
Business Development Manager 17,500 CHF 20,386 USD
Business Analyst 12,700 CHF 14,794 USD
Project Manager 12,900 CHF 15,027 USD
Developer 9,460 CHF 11,020 USD

Employ in Switzerland

Employing in Switzerland

When onboarding an individual from Switzerland, the employer needs to have knowledge of the employment laws, benefits, and deductions. This section will cover much of that.

Employee Contract

According to Swiss laws, employment contracts, written or not, are mandatory. The contract must mention all the details about the employer along with terms and conditions. The employment contract in Switzerland must be written in one of the four official languages in the country (German, French, Italian, Romansh).

Probation Period

The probationary period for employees ranges from 1 – 3 months.

Public and Provincial Holidays

Date Name Localities
January 1 New Year’s Day All
January 2 Berchtold Day 15 states
January 6 Epiphany GR (partly), SZ, TI, UR
February 27 Carnival Thursday SZ
March 1 Neuchâtel Republic Day NE
March 19 Saint Joseph’s Day LU (partly), NW, SO (partly), SZ, TI, UR, VS
April 3 Näfels Procession GL
April 18 Good Friday All except TI, VS
April 21 Easter Monday All except LU, NE
May 1 May Day BL, BS, JU, SH, ZH
May 1 May Day (Half-Day) SO
May 29 Ascension Day All
June 9 Pentecost Monday All except NE
June 19 Corpus Christi 13 states
June 23 Jura Independence Day JU
August 1 Swiss National Day National Holiday
August 15 Assumption of Mary 12 states
September 11 Genevese Fast GE
September 22 Mauritius Day AI (partly)
September 22 Federal Fast Monday VD, NE
September 25 St. Nicholas of Flüe OW
November 1 All Saints’ Day 15 states
December 8 Immaculate Conception 12 states
December 24 Christmas Eve SZ
December 25 Christmas Day All
December 26 St. Stephen’s Day All except VD, GE, JU
December 31 New Year’s Eve SZ
December 31 Restoration of the Republic GE

Employee Leaves

Type of Leave Time Period Mandatory
Annual/Earned Leave 4 weeks Yes
Sick Leave 3 weeks Yes
Maternity Leave 14 weeks Yes

 

Leave Compliance

Public and Provincial Holidays

Payroll in Switzerland

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Payroll cycle

The payroll cycle is Monthly in Switzerland.

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Minimum wage

The minimum wage varies per canton(district) and ranges from 20.00 CHF to 25 CHF.

Read more

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Overtime pay

The overtime must be compensated at a premium of 25% and must not exceed 2 hours a day.

How taxes work

Employer Payroll Tax

Type of Scheme  Contribution
Old Age Survivors Insurance (OASI) 4.35%
Invalidity Insurance (IV) 0.70%
Loss of Earnings Compensation (IPG) 0.25%
Unemployment Insurance (AD) 1.1% for the portion of the salary up to CHF 148,200

Employee Payroll Tax

Type of Scheme Contributions
Old Age Survivors Insurance (OASI) 4.35%
Invalidity Insurance (IV) 0.70%
Loss of Earnings Compensation (IPG) 0.25%
Unemployment Insurance (AD) 1.1% for the portion of the salary up to CHF 148,200 

The minimum income for mandatory contribution is CHF 2,520 per year.

Employee Income Tax

Direct federal tax income rates for single taxpayers are as follows for 2025:

Taxable Income

(Swiss Francs, CHF)

Tax Rate (%)
0 to 18,500 0
18,500 to 33,200 0.77
33,200 to 43,500 0.88
43,500 to 58,000 2.64
58,000 to 76,100 2.97
76,100 to 82,000 5.94
82,000 to 108,800 6.60
108,800 to 141,500 8.80
141,500 to 184,900 11
184,900 to 793,300 13.2
Above 793,300 11.5

Direct federal tax rates for married taxpayers and taxpayers who are divorced or widowed with minor children are as follows for 2025:

Taxable Income

(CHF)

Tax Rate (%)
0 to 33,000
33,000 to 53,400 1
53,400 to 61,300 2
61,300 to 79,100 3
79,100 to 94,900 4
94,900 to 108,600 5
108,600 to 120,500 6
120,500 to 130,500 7
130,500 to 138,300 8
138,300 to 144,200 9
144,200 to 148,200 10
148,200 to 150,300 11
150,300 to 152,300 12
152,300 to 940,800 13
Above 940,800 11.5

VAT

Switzerland levies a VAT at 8.1%.

Bonus

13th Month Pay

In Switzerland, the 13th month’s pay is not mandatory however the employers may give incentive to their employees that is typically paid at the end of the year.

Employee Benefits

Swiss employees are entitled to benefits that their employers offer. Some of these are the following:

  • Social Security
  • Pension
  • Accident Insurance
  • Health Insurance

Employee offboarding

Switzerland practices the principle of freedom when choosing to terminate an employment contract. This means either party can terminate the contract – either on the grounds of statutory or notice period.

The notice period for termination for probationary employees ranges from 1 – 7 days and 1 – 3 months for regular employees.

There is no statutory provision for severance pay in Switzerland. However, an exception is specified for employees over 50 years old who have worked for the same company for 20 years. According to the Code of Obligations, they are entitled to 2 months worth of salary as severance pay.

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Visa and
immigration

There are two ways in which foreign workers may be allowed to work in Switzerland:

  • If the foreign employee belongs to the European Union (EU) and/or the European Free Trade Association (EFTA), they are allowed to enter the country and seek for employment for 3 months which can be extended to 6 months if they can prove that they are actively looking for jobs within the country by registering at employment centers. Once they find a job, they can apply for a residence permit to stay in Switzerland.
  • If the foreign employee does not come from EU/EFTA countries, they must first have a job offer from a Swiss employee. The employer applies for their residence visa while the foreign employee has to apply for a work visa.

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